Service-dominant logic and the business model concept: toward a conceptual integration

Companies are recently affected by an ongoing change of customer behaviour. Customers are no longer solely interested in product offerings but call for a provision of service solutions that accompany these offerings. This development forces companies to rethink their basic business logic by paying more attention to the crucial service aspect. This change goes along with a need for companies to redefine their idea of how to create and capture value. Against this background, we ask: how does an increased focus on service influence a company's business model? We examine this question based on the service-dominant logic concept as well as the business model concept and discuss possibilities how to adapt the business model to a service-dominant business logic. As a result, we develop a set of propositions describing the influence of a company's service-dominant business logic on basic elements of a company's business model. Our research shows that a fundamental re-design of the business model is necessary to successfully implement service-dominant logic.

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